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ĤasBank
XacBank (reads like "Has-Bank" in English), based out of Ulaanbaatar, Mongolia, is a microfinance institution and community development bank that was formed in December 2001. Right Bank - The bank's slogan, "Right Bank", was notably coined by one of the firm's co-founders, Ganhuyag Chuluun Hutagt, now CEO of TenGer finance group and member of the Board of Directors for the Mongolian Stock Exchange. Background and Main Challenges XAC (Golden Fund for Development) LLC began in 1998 as part of the “MicroStart Mongolia” project under UNDP, shortly afterwards transformed into Mongolia’s first NBFI (non-bank financial institution) by uniting the micro-financial service activities of six national NGOs (non-government organizations). From humble beginnings, XacBank was formed in 2001 by merging the two largest NBFIs in Mongolia. Besides XAC LLC there was Goviin Ehlel (Gobi Start) LLC which was established by Mercy Corps with funding from USAID as a NBFI serving rural areas. Mongolia, the size of Western Europe, has a population of around 2.7 million people, with one of the lowest per person density ratios in the world. By number of branches and infrastructure, XacBank is the 3rd largest bank in Mongolia, with more than 70 branches located in all aymags (provinces) of the country. With 70% of its clients living in the rural areas, successfully implemented franchising saving and credit cooperatives and mobile banking scheme and a newly projected Nomadic Banking - mobile phone based banking solution assist in reaching banked and unbanked clients in the most remote areas. In 2008, XacBank had privilege of co-hosting the 11th Annual Conference of Microfinance Institutions, under the patronage of the President of Mongolia, where MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States) held its first ever conference in Central Asia. The microfinance industry is maturing, and the conference addressed the changes taking place, with investors arriving on the scene in force, and the need for traditional MFI models to upgrade with new technology and business practice. Microfinance generally refers to loans, savings, payments, and insurance services targeted at low-income clients. TenGer Financial Group LLC Founded in 1999 as one of the first non-bank financial companies in Mongolia and was initially known as Goviin Ekhlel. It then became a holding company of XacBank upon the merger of Goviin Ekhlel with X.A.C. (Golden Fund for Development) two major non-bank financial institutions in 2001, which created XacBank and X.A.C.-GE Holding. X.A.C.-GE Holding was renamed TenGer Financial Group. It is a parent of XacBank and other companies such as, ХасLeasing, ХасSecurity and Horus Nomadic Solutions. Tenger Financial Group's shareholders comprise well known international institutions and local business entities. In 2009 Tenger Financial Group successfully raised shares worth MNT 7.5 billion thanks to its shareholders including, EIT Capital Management LLC, IFC, EBRD, Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and local NGOs. MNT 5 billion of this raised shares are expected to infuse Xac Bank's capital and enlarge its service scope."MNT 5 bn capital injected into Mongolian microfinance". Retrieved 24 November 2009 Presence and Portfolio By the end of 2008, XacBank served more than 64,607 borrowers and 112,917 depositors through 74 branches, with a total loan portfolio of over $ 56 million, deposits of $ 124 million, and a staff of 1020. Products and services XacBank’s core products include current and savings accounts, various credit and lending products, as well as both domestic and international remittances. Moreover, XacBank provides not only credit and debit card products such as MasterCard and VISA card being an associate member of these organizations, but also, popular international remittances and settlements through SWIFT, EUROGIRO and Western Union being a principal member of these networks. The main product categories * Deposit * Loan * Leasing * Remittance * Electron banking * Trade finance * Training and Consulting Percentage of operations comprised by microfinance: ::91-100% Other services provided: ::Full-scale financial services ::Second-tier lending to MFIs Main Funding Sources * Loans * Savings * Shareholder capital Largest funder * TenGer Financial Group LLC Network :Primary network ::MFC (Microfinance Centre for Central and Eastern Europe and the New Independent States), EuroGiro network, Western Union, Swift network, GRI (Global Report Initiative) :Secondary network ::MasterCard Worldwide, Visa International External Evaluators' Rating :Primary rater ::Moody’s Investors Service - “Ba1” as of May, 2007 :Secondary rater ::Planet Rating - “A” as of April, 2006 References MicroFinanceFocus.com External links * Xacbank.mn official site * TengerFinancialGroup.mn, Tenger Financial Group official site Category:Banks of Mongolia Category:Banks established in 1998